CEOs of German companies look to the future with confidence. Nevertheless, they want to take austerity measures. This also affects training budgets and personnel planning. Some companies plan to freeze hiring, but not the majority.
That comes from one current survey by the management consultancy EY. In October, EY surveyed 1,200 CEOs worldwide on topics such as economic prospects, strategic challenges and artificial intelligence. 100 managers from German companies took part in the survey.
Overall, the outlook for the coming year is positive. 93 percent of all respondents said they were confident about their growth path. Worldwide and also in Germany, more than half of the CEOs surveyed assume that their employer’s sales will “increase somewhat” in 2024. When asked what factors will be the biggest obstacle to maximizing your sales and profitability, slow economic growth in key markets worldwide tops the list (22 percent). CEOs from companies in Germany see the inability to pass on rising costs as the biggest factor (35 percent).
More than a third want to reduce their workforce
Despite an optimistic outlook for the next financial year, companies are planning measures to combat economic bottlenecks. 38 percent said they are shifting their talent strategy toward contract or hourly workers. 36 percent plan to restructure or reduce the number of employees, 34 percent plan to cut the budget for training and development. Around a quarter of the CEOs surveyed are considering a hiring freeze.
Companies do not want to spend money on AI transformation in the future. There could be two reasons for this: 40 percent of the German CEOs surveyed consider themselves to be successful in using generative AI and see themselves on an equal footing with the competition. 37 percent do not yet see any significant benefits that they can derive from investing in AI and have only advanced AI in some areas of the company. Almost all companies surveyed (99 percent worldwide, 97 percent in Germany) stated that they are not making or planning any major investments in AI.
When it comes to implementing AI in HR work, Germany is slightly behind in global comparison. Around 40 percent of companies worldwide say they have completed measures such as hiring new talent with AI skills or setting up an AI task force, and around half are still working on them. In Germany the numbers are on average a few percentage points lower.
Angela Heider-Willms is responsible for reporting on the topics of transformation, change management and leadership. She also focuses on HR technology and diversity.
2023-11-08 16:33:30
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